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Regulatory Relaxations for Startups- Clarifications relating to Issue of Shares

FEMA - 52 - Dated:- 11-2-2016 - RBI/2015-16/319 A.P. (DIR Series) Circular No. 52 February 11, 2016 To, All Authorised Dealer Category - I Banks Madam/Sir, Attention of Authorised Dealer Category - I (AD Category-I) banks is invited to the Foreign Ex .....

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of the Sixth Bi-Monthly Monetary Policy Statement for 2015-16, Reserve Bank of India vide Press Release dated February 2, 2016, had announced that in case of startups, certain permissible transactions under the existing regulatory framework shall be .....

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ly, the following is clarified: a. Issue of shares without cash payment through sweat equity: Reserve Bank of India vide Notification No. FEMA.344/2015 RB dated June 11, 2015 has permitted Indian companies to issue sweat equity, subject to conditions .....

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al Government under the Companies Act 2013 in respect of other companies. b. Issue of shares against legitimate payment owed: Reserve Bank of India vide Notification No. FEMA.315/2014-RB dated July 10, 2014, has permitted Indian companies to issue eq .....

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